Jun 7, 2017
HSBC faces fresh suit alleging forex manipulation
HSBC is facing a fresh legal battle over allegations that its traders manipulated foreign exchange markets for their own profit at the expense of their clients, with the allegations centring on trades from more than a decade ago. At the time of ECU's 2006 forex trades, the firm suspected it was being ripped off by HSBC traders "Front running" its forex orders. The DoJ issued the arrest warrants despite the fact that the bank had hired law firm Cleary Gottlieb to carry out a review of its forex trades - including the deal the two traders were accused of cheating on - and found no breaches of its code of conduct. The court filing shines another spotlight on the record of Stuart Gulliver, HSBC's chief executive, who was responsible for forex trading as head of its investment bank before taking his current post in 2011. The arrest warrants issued by the DoJ last year were for Mark Johnson, HSBC's global head of forex cash trading, and Stuart Scott, its former head of forex cash trading for Europe, the Middle East and Africa.
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